Okay I have a dilemma. Pawn shop also has a W German Sig P226 bi-tone (black frame, nickel slide) for $375. Which one now which one? They also have a LINB Ruger Single Six .22 with faux ivory grips and vacquero style fixed rear sights for $280. I put the 5906 on layaway but could transfer the money to another item if I do it soon.
I'd still get the S&W.
I paid $315 for my P226, so that price is repeatable. $200 for a 5906 isn't, not anywhere near what I've seen them go.
The 5906 is stainless steel frame and slide, the W German Sig is carbon steel slide and aluminum frame. Both guns, you can find used parts if needed, and neither are "new" and being made (I discovered this when I bought my Sig; the decocker spring has changed, and so has the grip fit). The older Sigs have a tendency to rust on the slide; mine had some pits, yours might have been refinished due to that.
Any cosmetic problems with the 5906, short of VERY deep gouges, is pretty easily addressed. If you have access to bead blasting, you probably can take it back to as-new with just a quick blast, no further treating. If you don't, a green scotchbrite pad done carefully will come very close. And as said above, you could pimp it out with some Mothers polish.
Cosmetic issues on the Sig- you can cover frame scratches with Birchwood Casey Aluminum Black if they are small, you likely would need to paint it for anything more. Not much you can do with nickel if there are problems.
I have a 915 (aluminum frame 3rd Gen S&W), and the P226 (among others). The Sig is a very nice pistol, and they have some street and internet love. That said, I wouldn't say it's any better than the Smith is. These weren't crap, they were discontinued because the market went elsewhere.